Trump Administration Import Tariffs Decrease But Remain in Place

This Wednesday (April 9, 2025), President Trump signed his latest executive order modifying the so-called “reciprocal tariffs” on goods imported from all countries and suspending nearly all country-specific rates until July 9, 2025.  As of April 10, 2025, all goods imported into the United States from all countries will continue to be subject to a 10% additional import duty, except:

1. Goods from China, which will be subject instead to two additional import duties totaling 145%, regardless of the goods’ classification.  Existing Section 232 and Section 301 duties, will still apply to certain Chinese goods on top of this baseline additional tariff.
2. Canadian and Mexican goods, which are subject to a separate 25% import duty, unless the goods (a) are compliant with the USMCA treaty; and (b) are not automotive goods subject to paragraph 4 below.  For certain Canadian exports of energy, this tariff is reduced to 10%.
3. Copper, pharmaceuticals, semiconductors, lumber, bullion, and certain energy and minerals products, which are not subject to the additional duties.
4. Automobiles, which are subject to a separate 25% import duty as of April 3 for all countries, with automobile parts being subject to the same tariff on or before May 3.  Currently, automobiles (and parts) of US, Mexican, or Canadian origin are exempt from this duty, but in future, Canadian and Mexican exporters will have to certify the US content of their automobiles or parts, and only the US content will be excluded from the additional duty.
5. Steel, aluminum, and certain listed derivatives, which are subject to a separate 25% import duty, effective March 12 from all countries.  All previous exclusions and exemptions from Section 232 steel and aluminum tariffs have been terminated.

Businesses who rely on importing goods into the US will want to review their contracts to determine if there are options for reallocating the payment or ultimate costs of additional import duties.  Separately, businesses may have options for changes to their supply chains and procedures to help mitigate the effects of additional import duties.    

For guidance on navigating the ever-changing import tariff environment in the US, please feel free to contact Asa Markel (amarkel@masudafunai.com) at Masuda Funai.

Masuda Funai is a full-service law firm with offices in Chicago, Detroit, Los Angeles, and Schaumburg^.